Stifel Financial Corp. September 2014 · 2014. 9. 29. · Keefe, Bruyette & Woods Acquisition 2012 #1 Ranked in FT/StarMine Award* 2008 #1 Ranked in FT/StarMine ... 8 Oppenheimer

Stifel Financial Corp.

September 2014

2

Disclaimer

Forward-Looking Statements

This presentation may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that

involve significant risks, assumptions, and uncertainties, including statements relating to the market opportunity and future business prospects of

Stifel Financial Corp., as well as Stifel, Nicolaus & Company, Incorporated and its subsidiaries (collectively, “SF” or the “Company”). These

statements can be identified by the use of the words “may,” “will,” “should,” “could,” “would,” “plan,” “potential,” “estimate,” “project,”“believe,” “intend,” “anticipate,” “expect,” and similar expressions. In particular, these statements may refer to our goals, intentions, and

expectations, our business plans and growth strategies, our ability to integrate and manage our acquired businesses, estimates of our risks and

future costs and benefits, and forecasted demographic and economic trends relating to our industry.

You should not place undue reliance on any forward-looking statements, which speak only as of the date they were made. We will not update

these forward-looking statements, even though our situation may change in the future, unless we are obligated to do so under federal securities

laws.

Actual results may differ materially and reported results should not be considered as an indication of future performance. Factors that could cause

actual results to differ are included in the Company’s annual and quarterly reports and from time to time in other reports filed by the Company

with the Securities and Exchange Commission and include, among other things, changes in general economic and business conditions, actions of

competitors, regulatory and legal actions, changes in legislation, and technology changes.

Use of Non-GAAP Financial Measures

The Company utilized non-GAAP calculations of presented net revenues, compensation and benefits, non-compensation operating expenses,

income before income taxes, provision for income taxes, net income, compensation and non-compensation operating expense ratios, pre-tax

margin and diluted earnings per share as an additional measure to aid in understanding and analyzing the Company’s financial results for the three

and six months ended June 30, 2014. Specifically, the Company believes that the non-GAAP measures provide useful information by excluding

certain items that may not be indicative of the Company’s core operating results and business outlook. The Company believes that these non-

GAAP measures will allow for a better evaluation of the operating performance of the business and facilitate a meaningful comparison of the

Company’s results in the current period to those in prior periods and future periods. Reference to these non-GAAP measures should not be

considered as a substitute for results that are presented in a manner consistent with GAAP. These non-GAAP measures are provided to enhance

investors' overall understanding of the Company’s financial performance.

Stifel Overview

4

Stifel – Premier Investment Bank and Full-Service Investment Firm

Largest U.S. equity research platform

Broad product portfolio & industry expertise

Stifel at a Glance Net Revenue - $1,973 million (2013)

Global Wealth Management (GWM)Net Revenue - $1,117 million (2013)

Private Client Stifel Bank & Trust Margin and Securities-based Lending Asset Management

Institutional Group (IG)Net Revenue - $861 million (2013)

Equity & Fixed Income Capital Raising M&A Advisory / Restructuring Institutional Equity and Fixed Income Brokerage Independent Research

Low leverage (3.7x) (1) (2), $2.2 billion stockholders’ equity (2) and $3.1 billion market capitalization (3)

34% Insider ownership aligns employees' interests with other shareholders (4)

Over 5,880 associates(2)

Balanced business mix (54% GWM / 46% IG) (1H 2014 net revenues)

Over 2,000 financial advisors(2) with $173 billion in combined client assets(2) – national presence

Largest U.S. equity research platforms with over 1,000 stocks under coverage(2)

Broad investment banking and institutional sales and trading capabilities – domestic and international

(1) Assets / equity (as adjusted).(2) As of 6/30/2014. (3) As of 9/9/2014.(4) Insider ownership percentage includes all fully diluted shares, units outstanding and options outstanding, as of 9/8/2014.

5

2005Legg Mason’s

Capital Markets Division Acquired

200956 UBS Private Client

Branches Acquired

2010Thomas Weisel Partners Merger

2007Ryan Beck

Acquisition

2011Stone & Youngberg

Acquisition

Ne

t Re

ve

nu

es ($

M)

2013Keefe, Bruyette &

Woods Acquisition

2012#1 Ranked in FT/StarMine

Award*

2008#1 Ranked in FT/StarMine

Stock Picking

2010#1 Ranked in both

FT/StarMine & WSJ Best on the Street

Significant Growth, Unwavering Commitment2013

Knight Capital Group’s Fixed

Income Division2013

#2 Ranked in FT/StarMine

Award

2013Acacia Bank & Ziegler Lotsoff

2007Acquired Stifel Bank

& Trust

2014De La Rosa,

Oriel Securities& LMIC

Stifel Overview

2012Miller Buckfire

2008Butler Wick

6

Building Scale

Growth Focused Investment Banking Research, Sales and Trading Achieved cost efficiencies July 2010

Private Client Revenue production has exceeded

expectations October 2009

Significant enhancement to our Capital Markets business

Achieved cost savings objectives December 2005

Bank holding company Financial holding company Grown assets from ~ $100M to $5.0B April 2007

Private Client Public Finance Seamless & efficient integration December 2008

Fixed Income IB Fixed Income Sales and Trading Private Client Seamless & efficient integration October 2011

FIG Investment Banking FIG Sales and Trading / Research Exceeded expectations February 2013

56 UBS Branches

Private Client Capital Markets Achieved cost savings objectives February 2007

Restructuring advisory December 2012

KnightFixed Income

Fixed Income Sales and Trading – U.S. & Europe

Fixed Income Research July 2013

Asset Management Over $4 billion in assets November 2013

Clean portfolio of 1-4 family residential mortgages

October 2013

Each merger has been accretive to Stifel and retention remains high

California-based investment bank and bond underwriter

April 2014

UK-based full service investment bank

July 2014

LMIC - Customized investment advisory and trust services

Pending: June 2014

7

Bulge Bracket Boutique

LARGEST provider of U.S. equity research

2nd LARGEST Equity trading platform in the U.S.

outside of the Bulge Bracket firms(1)

FULL SERVICE investment banking with

expertise across products and industry sectors

TOP TEN retail platform

Leading broker-dealer providing wealth management and institutional services to consumers and companies

Stifel’s Differentiated Value Proposition: Growth, Scale and Stability

Institutional Wealth Management

Source: SIFMA and publicly available information for U.S. brokerage networks.Note: Includes investment banks only. .(1) Based on 2013 U.S. trading volume per Bloomberg.(2) Represents Wealth Management Americas segment only.(3) Excludes 3,555 independent contractors and 334 independent advisor representatives.

Retail Brokerage by Number of Brokers

Size / scale

Large distribution

Trading

Retail

Issues

Lack of focus

Banker turnover

Lack of commitment

Research indifference

Lack of growth investors

Firm focus

Good research

Growth investor access

Issues

Financial / firm stability

Trading support

Few with retail

Size / scale

Firm focus

Stability (financial & personnel)

Large distribution

Trading

Outstanding research

Retail

Rank Firm Brokers

1 Morgan Stanley Wealth Management 16,426

2 Bank of America Merrill Lynch 15,624

3 Wells Fargo Securities 15,146

4 UBS(2) 7,000

5 Raymond James(3)

6,202

6 Stifel 2,085

7 RBC Capital Markets 1,900

8 Oppenheimer & Co Inc 1,390

9 JPMorgan 800

10 Deutsche Bank 772

11 Janney Montgomery Scott 725

12 Robert W Baird & Co 709

13 Sterne Agee & Leach Inc 560

14 Stephens Inc. 526

15 Southwest Securities Inc 464

16 Canaccord Genuity Corp 425

17 Wedbush Securities Inc 400

18 DA Davidson & Co 320

19 Barclays Capital 250

20 Lazard Capital Markets 235

8

Well-diversified, low risk business model with balanced retail and institutional exposure

8

Unburdened by capital constraints

Low leverage business model and conservative risk management

Limited balance sheet risk

Stable wealth management business is augmented by profitable and growing institutional business

Drive revenue synergies by leveraging the wealth management and institutional business

Note: Net revenues and operating contribution percentages excludes the Other segment. Refer to slide 30 for additional segment information.

Net Revenues

6M 2013 6M 2014

Core Operating Contribution

6M 2013 6M 2014

Balanced business model facilitates growth in all market environments

IG41%GWM

59%

IG46%GWM

54%

IG29%

GWM71%

IG34%

GWM66%

9

Demonstrated ability to grow through all market environments while maintaining solid profitability

(1) CAGR reflects years 2006 to 2013.

CAGR: 24%

Core Net Revenues ($MM)(1) Core Net Income ($MM)(1)

Financial Crisis Financial Crisis

CAGR: 24%

Segment Overview – Global Wealth Management

11

(1) Includes Independent Contractors.(2) CAGR reflects years 2006 to 2013.

Global Wealth Management

Provides Securities Brokerage Services and Stifel Bank Products

CAGR: 29%CAGR: 25%

Grown from 600+ financial advisors in 2005 to over 2,000(1) financial advisors currently

Proven organic growth and acquirer of private client business

Retail investors are generally mid- to long-term buyers

Goal of providing price stability and support to the institutional order book

Strategy of recruiting experienced advisors with established client relationships

Expanding U.S. footprint

Net Revenues ($MM) (2) Core Operating Contribution ($MM) (2)

Overview National Presence

12(1) Includes Independent Contractors.

Global Wealth Management

Key Operating Metrics

Accounts

Brokers (1)

Assets Under Management ($MM)

Branches

1313

Note: Data as of 6/30/14(1) Average interest earning assets as of 6/30/14.(2) Non-agency MBS makes up less than 1% of Investment Portfolio.(3) Commercial Real Estate make up less than 1% of the loan portfolio.

Interest Earnings Assets(1) Investment Portfolio

Total: $5.1 Billion Total: $2.9 Billion(2)

Stifel Bank and Trust

Total: $1.9 Billion(3)

Loan Portfolio (Gross)

Acquired FirstService Bank, a St. Louis-based, Missouri-chartered commercial bank, in April 2007

Stifel Financial became a bank holding company and financial services holding company

Balance sheet growth with low-risk assets

Funded by Stifel Nicolaus client deposits

Maintain high levels of liquidity

Overview Strength of Brokerage Position

Offers banking products (securities based loans and mortgage loans) within the GWM client base, including establishing trust services

Built-in source of business

High net worth clients

Highly efficient due to lack of “brick and mortar” deposit focused facilities

Growing Asset Management Capabilities

$9 Billion

$5 Billion

$1.5 Billion

$1 Billion

$1 Billion

$700 Million

Assets Location

Baltimore, New York, Cincinnati, Philadelphia

Chicago / Milwaukee

Baltimore, MD

St. Louis, MO

Portland, OR

Florham Park, NJ

Segment Overview – Institutional Group

16

(1) Based on 2013 U.S. trading volume per Bloomberg. (2) Includes Thomas Weisel historical investment banking revenues for years 2006 through September 30, 2010.(3) 2012 includes realized and unrealized gains on the Company’s investment in Knight Capital Group, Inc. of $39.0 million.

Institutional Group

Net Revenues ($MM)(2)(3)

Fixed Income Brokerage + Investment Banking

Overview

Provides securities brokerage, trading, research, underwriting and corporate advisory services

Largest provider of U.S. Equity Research

2nd largest Equity trading platform in the U.S. outside of the Bulge Bracket(1)

Full Service Investment Bank

Comprehensive Fixed Income platform

Equity Brokerage + Investment Banking(2)

17

U.S. Equity Research Coverage (1)

Coverage Balanced Across All Market Caps (3)

Institutional Group – Research

Stifel Research Highlights

17

Largest U.S. Equity Research Platform

Largest provider of U.S. Equity Research

Largest provider of U.S. Small Cap Research

110 analyst across 12 sectors

Largest provider of Financial Services coverage

Ranked #2 in the FT/Starmine 2013 Survey (2)

Stifel analysts ranked #1 in Earnings Estimators among 3,562 analysts

(1) Source: StarMine rankings as of 9/10/14 for US Domiciled stocks with a rating. Does not include Closed End Funds.(2) Ranking includes both Stifel and KBW.(3) Small Cap includes market caps less than $1 billion; Mid Cap includes market caps less than $5 billion. Research coverage distribution as of 8/20/14.

Rank Firm Overall Mid Cap Small Cap

1 Stifel / KBW 1,415 510 457

2 BofA Merrill Lynch 1,166 449 147

3 Goldman Sachs 1,082 375 87

4 JPMorgan 1,049 374 144

5 Wells Fargo Securities, Llc 1,022 386 155

6 Raymond James 1,002 373 277

7 Credit Suisse 935 288 151

8 Barclays 927 317 85

9 Morgan Stanley 919 285 85

10 Deutsche Bank Securities 890 264 121

11 Citi 884 285 107

12 RBC Capital Markets 884 300 129

13 Jefferies & Co. 851 278 182

14 UBS 755 220 62

15 Robert W. Baird & Co., Inc. 695 240 154

16 Morningstar, Inc. 641 127 17

17 William Blair & Company, L.L.C.592 198 169

18 BMO Capital Markets 588 176 96

19 Cowen And Company 566 155 157

20 Keybanc Capital Markets 548 256 106

18

Institutional Equity Sales Equity Trading

Institutional Group – Equity Sales and Trading

18

Extensive Distribution Network

Powerful Platform Spanning North America and Europe

100 person sales force, commission based

Experts in small and mid cap growth and value

Team based sales model with 2-4 sales people per account

Team leaders have an average of 15 years experience

Offices in all major institutional markets in North America & Europe

Accounts range from large mutual funds to small industry focused investors

Managed over 780 non-deal roadshow days in 2013

Extensive experience with traditional and overnight corporate finance transactions

53 sales traders located in

Baltimore, New York, Boston, Dallas, San Francisco, and London

24 position traders covering each major industry

8 specialized traders focused on: Option Trading, Convertible and ETF Trading

Profitable model with advantages of scale

Relationships with over 3,500 institutional accounts globally

Active daily market maker in over 3,700 stocks

Traded over 11.7 billion shares in 2013

Complete coverage of North America and Europe for North American listed equities

Major liquidity provider to largest equity money management complexes

Multi-execution venues: high-touch, algorithms, program trading, and direct market access

Dedicated convertible sales, trading, and research desk

Overview

Strong Fixed Income Brokerage Capabilities

Institutional Group – Fixed Income

Client Distribution (1)(2)

Platform & Products

(1) Client Distribution is as of 7/28/2014. (2) Other category includes: Credit Union, Corporation, Hedge Fund, Pension Fund, Trust Company, Foundation, Endowment, University & Non-Profit.

19

Comprehensive platform

85 traders with annual client trade volume approaching $400 billion

27-person Fixed Income Research and Strategy Group

7 person US Corporate Debt Capital Markets Group

Widespread distribution

Nearly 200 Institutional sales professionals covering over 6,200 accounts

34 institutional fixed income offices nationwide

European offices in London and Zurich

Customer-driven

Focus on long-only money

managers and income funds

versus hedge funds

Consistency of execution

Identification of relative

value through asset

class/security selection

US Government and Agency Securities

Investment Grade Credit

Mortgage-Backed Securities (MBS)

Whole Loans

Government-Guaranteed Loans

Asset-Backed Securities (ABS)

Commercial Mortgage-Backed Securities

Certificates of Deposit

Municipal Sales and Trading and Public Finance

UK Sales and Trading (former Knight Capital team)

High Yield and Distressed Credit

Loan Trading Group

Aircraft Finance & Credit Solutions

Hybrid Securities

Emerging Markets

Structured Products

Overview

Institutional Group – Public Finance

20

Stifel has ranked in the top ten nationally for senior managed negotiated underwritings for the past three years, and Stifel has ranked number one nationally for senior managed K-12 negotiated underwritings since 2011.

Total of 21 Public Finance offices

105 Public Finance professionals

Specialty sectors:

Education

Local Government/Municipal

Healthcare

Public-Private Partnerships/Development

Housing

National K-12 2014YTD Negotiated Deal Rankings

Source: Thomson Reuters: SDC (True Economics to Book). 2014YTD – 9/9/2014

Public Finance UnderwritingsNegotiated

Number Par Amount Number Par Amount Number Par Amount

Senior Manager/Private Placement 273 $4,962,768,479 598 $9,928,173,963 559 $9,989,033,787

Co-Manager 63 $14,300,337,051 151 $41,793,904,000 162 $53,169,398,000

Total 336 $19,263,105,530 749 $51,722,077,963 721 $63,158,431,787

Competitive

Number Par Amount Number Par Amount Number Par Amount

Senior Manager 31 $231,074,999 73 $587,723,000 114 $803,240,000

Co-Manager 171 $4,122,235,860 268 $3,138,960,000 299 $4,586,264,000

Total 202 $4,353,310,859 341 $3,726,683,000 413 $5,389,504,000

June 30, 2014 2013 2012

June 30, 2014 2013 2012

Rank Book Runner

Par Amount

(US$ mil)

Number of

Issues

1 Stifel Nicolaus & Co Inc 5,247.8 323

2 Piper Jaffray & Co 3,921.5 225

3 Bank of America Merrill Lynch 3,308.7 15

4 RBC Capital Markets 3,242.3 217

5 Raymond James 2,148.3 97

6 Robert W Baird & Co Inc 1,643.2 120

7 Citi 1,462.1 22

8 George K Baum & Company Inc 1,339.9 100

9 J P Morgan Securities LLC 1,293.4 11

10 Wells Fargo & Co 1,209.3 23

11 D A Davidson & Co 1,031.6 113

12 City Securities Corporation 966.4 44

13 BOSC Inc 912.7 55

14 Loop Capital Markets 744.5 7

15 Southwest Securities 679.9 28

16 FirstSouthwest 607.6 44

17 Fifth Third Securities Inc 593.9 55

18 Roosevelt & Cross Inc 592.4 78

19 PNC Financial Services Group Inc 409.4 31

20 Janney Montgomery Scott LLC 389.8 35

Accomplished U.S. Equity Underwriting Franchise – All Equity Transactions

Investment Banking

Bookrun Equity Deals Since 2010All Managed Equity Deals Since 2010

21

Source: Dealogic. Rank eligible SEC registered IPOs and Follow-On offerings since 2010. Includes demutualizations. As of 7/31/14. Overlapping deals between Stifel and its acquired firms have been removed.Note: $ Volume represents full credit to underwriter for All Managed Equity Deals and apportioned credit to bookrunner for Bookrun Equity Deals. Bold font indicates middle-market firms.

($ in billions) # of $

Rank Firm Deals Volume

1 Bank of America Merrill Lynch 1,034 $597.2

2 JPMorgan 1,012 $570.1

3 Citi 947 $567.6

4 Morgan Stanley 913 $546.1

5 Barclays 848 $488.4

6 Credit Suisse 823 $474.4

7 Wells Fargo Securities 821 $420.4

8 Deutsche Bank 814 $472.9

9 Stifel / Keefe, Bruyette & Woods 782 $272.5

10 Goldman Sachs 750 $486.9

11 RBC Capital Markets 743 $354.8

12 UBS 628 $349.7

13 Raymond James 537 $256.2

14 Robert W Baird & Co 403 $112.1

15 Piper Jaffray & Co 402 $179.6

16 Jefferies LLC 394 $91.1

17 JMP Securities LLC 358 $67.5

18 Oppenheimer & Co Inc 357 $87.9

19 William Blair & Co LLC 302 $82.1

20 Cowen & Co LLC 300 $63.4

21 BMO Capital Markets 268 $102.1

22 Canaccord Genuity Corp 263 $31.6

23 Janney Montgomery Scott 224 $38.7

24 KeyBanc Capital Markets 217 $83.9

25 Ladenburg Thalmann & Co Inc 216 $31.1

($ in billions) # of $

Rank Firm Deals Volume

1 Bank of America Merrill Lynch 946 $111.4

2 JPMorgan 899 $112.5

3 Morgan Stanley 841 $121.7

4 Citi 832 $107.8

5 Barclays 709 $98.4

6 Goldman Sachs 679 $108.4

7 Credit Suisse 666 $80.8

8 Deutsche Bank 646 $69.2

9 Wells Fargo Securities 578 $44.6

10 UBS 439 $43.6

11 Jefferies LLC 317 $18.3

12 RBC Capital Markets 314 $23.5

13 Stifel / Keefe, Bruyette & Woods 257 $13.6

14 Raymond James 158 $8.1

15 Piper Jaffray & Co 140 $6.1

16 Cowen & Co LLC 119 $3.8

17 Roth Capital Partners 98 $1.9

18 Robert W Baird & Co 95 $4.1

19 Leerink Partners LLC 90 $3.5

20 BMO Capital Markets 75 $4.8

20 Aegis Capital Corp 75 $1.1

22 Lazard Capital Markets 64 $1.8

23 Sandler O'Neill & Partners 62 $4.9

24 KeyBanc Capital Markets 61 $3.6

25 Canaccord Genuity Corp 58 $2.6

Financial Overview

23

(1) CAGR reflects years 2006 to 2013.(2) Book Value Per Share adjusted for April 2011 three-for-two stock split (2006-2010).

Selected Financial Highlights

CAGR: 24% CAGR: 24%

CAGR: 21%CAGR: 24%

Core Net Revenues ($MM)(1) Core Net Income ($MM)(1) Total Equity ($MM)

Total Client Assets ($BN) Book Value Per Share(2)

CAGR: 37%

Stifel Financial Results

Three months ended June 30, 2014

(1) (2) (2)

24

(1) Non-core adjustments consist of merger-related revenues and expenses associated with our recent acquisitions and discontinued operations of SN Canada.(2) Results for the three months ended June 30, 2013 and March 31, 2014 are Core (non-GAAP).

($ in thousands, except per share amounts) Non-GAAP Non-Core GAAP 6/30/13 % Change 3/31/14 % Change

Total revenues 570,543$ (1,554)$ 568,989$ 508,022$ 12.3% 557,288$ 2.4%

Interest expense 9,048 (206) 8,842 12,608 (28.2%) 8,853 2.2%

Net revenues 561,495 (1,348) 560,147 495,414 13.3% 548,435 2.4%

Compensation and benefits 353,754 1,513 355,267 311,228 13.7% 344,487 2.7%

Non-comp operating expenses 122,811 4,546 127,357 108,964 12.7% 119,376 2.9%

Total non-interest expenses 476,565 6,059 482,624 420,192 13.4% 463,863 2.7%

Income from continuing operations before income taxes 84,930 (7,407) 77,523 75,222 12.9% 84,572 0.4%

Provision for income taxes 33,664 (1,718) 31,946 30,089 11.9% 32,544 3.4%

Net income from continuing operations 51,266$ (5,689)$ 45,577$ 45,133$ 13.6% 52,028$ (1.5%)

Discontinued operations:

Loss from discontinued operations, net of tax - (1,976) (1,976) - -

Net income 51,266$ (7,665)$ 43,601$ 45,133$ 13.6% 52,028$ (1.5%)

Earnings per diluted common share:

Income from continuing operations 0.68$ (0.08)$ 0.60$ 0.69$ (1.4%) 0.69$ (1.4%)

Loss from discontinued operations - (0.02) (0.02) - -

Earnings per diluted common share 0.68$ (0.10)$ 0.58$ 0.69$ (1.4%) 0.69$ (1.4%)

Weighted average number of shares outstanding:

Diluted 75,641 74,090 2.1% 75,691 (0.1%)

Ratios to net revenues :

Compensation and benefits 63.0% 63.4% 62.8% 62.8%

Non-comp operating expenses 21.9% 22.8% 22.0% 21.8%

Income from continuing operations before income taxes 15.1% 13.8% 15.2% 15.4%

Three Months Ended June 30, 2014 Three Months Ended

($ in thousands, except per share amounts) Non-GAAP Non-Core GAAP 6/30/13 % Change

Total revenues 1,127,831$ (3,465)$ 1,124,366$ 957,202$ 17.8%

Interest expense 17,901 (428) 17,473 23,176 (22.8%)

Net revenues 1,109,930 (3,037) 1,106,893 934,026 18.8%

Compensation and benefits 698,241 3,797 702,038 592,355 17.9%

Non-comp operating expenses 242,187 7,017 249,204 202,458 19.6%

Total non-interest expenses 940,428 10,814 951,242 794,813 18.3%

Income from continuing operations before income taxes 169,502 (13,851) 155,651 139,213 21.8%

Provision for income taxes 66,208 (4,107) 62,101 54,022 22.6%

Net income from continuing operations 103,294$ (9,744)$ 93,550$ 85,191$ 21.2%

Discontinued operations:

Loss from discontinued operations, net - (2,567) (2,567)

Net income 103,294$ (12,311)$ 90,983$ 85,191$ 21.2%

Earnings per diluted common share:

Income from continuing operations 1.37$ (0.13)$ 1.24$ 1.19$ 15.1%

Loss from discontinued operations, net - (0.04) (0.04)

Earnings per diluted common share 1.37$ (0.17)$ 1.20$ 1.19$ 15.1%

Weighted average number of shares outstanding:

Diluted 75,665 71,627 5.6%

Ratios to net revenues :

Compensation and benefits 62.9% 63.4% 63.4%

Non-comp operating expenses 21.8% 22.5% 21.7%

Income from continuing operations before income taxes 15.3% 14.1% 14.9%

Six Months Ended June 30, 2014 Six Months Ended

Stifel Financial Results

Six months ended June 30, 2014

(1) (2)

25

(1) Non-core adjustments consist of merger-related revenues and expenses associated with our recent acquisitions and discontinued operations of SN Canada.(2) Results for the six months ended June 30, 2013 are Core (non-GAAP).

26

Sources of Revenues

($ in thousands) 6/30/14 6/30/13

%

Change 3/31/14

%

Change 6/30/14 6/30/13

%

Change

Commissions 152,712$ 154,795$ (1.3%) 159,416$ (4.2%) 312,128$ 300,662$ 3.8%

Principal transactions 125,676 111,306 12.9% 126,461 (0.6%) 252,137 218,570 15.4%

Brokerage revenues 278,388 266,101 4.6% 285,877 (2.6%) 564,265 519,232 8.7%

Capital raising 81,159 71,303 13.8% 73,804 10.0% 154,690 121,152 27.7%

Advisory 60,356 48,140 25.4% 58,500 3.2% 119,129 75,196 58.4%

Investment banking 141,515 119,443 18.5% 132,304 7.0% 273,819 196,348 39.5%

Asset mgt and service fees 94,231 76,088 23.8% 89,170 5.7% 183,401 145,000 26.5%

Other 8,742 11,787 (25.8%) 5,200 68.1% 13,942 32,206 (56.7%)

Total operating revenues 522,876 473,419 10.4% 512,551 2.0% 1,035,427 892,786 16.0%

Interest revenue 46,113 32,893 40.2% 42,826 7.7% 88,939 62,699 41.9%

Total revenues 568,989 506,312 12.4% 555,377 2.5% 1,124,366 955,485 17.7%

Interest expense 8,842 12,634 (30.0%) 8,631 2.4% 17,473 23,203 (24.7%)

Net revenues 560,147$ 493,678$ 13.5% 546,746$ 2.5% 1,106,893$ 932,282$ 18.7%

Three Months Ended Six Months Ended

27

Brokerage & Investment Banking Revenues

($ in thousands) 6/30/14 6/30/13 % Change 3/31/14 % Change 6/30/14 6/30/13 % Change

Global Wealth Management 161,780$ 160,889$ 0.6% 161,505$ 0.2% 323,285$ 319,262$ 1.3%

Institutional Group

Equity brokerage 62,087 64,273 (3.4%) 65,768 (5.6%) 127,855 113,511 12.6%

Fixed income brokerage 54,520 40,939 33.2% 58,604 (7.0%) 113,124 86,439 30.9%

Total Institutional Group 116,607 105,212 10.8% 124,372 (6.2%) 240,979 199,950 20.5%

Total brokerage revenues 278,387 266,101 4.6% 285,877 (2.6%) 564,264 519,212 8.7%

Investment Banking:

Capital raising

Equity 65,750 53,577 22.7% 60,696 8.3% 126,174 85,172 48.1%

Fixed income 15,409 17,726 (13.1%) 13,108 17.6% 28,516 35,980 (20.7%)

Total capital raising 81,159 71,303 13.8% 73,804 10.0% 154,690 121,152 27.7%

Advisory fees 60,356 48,140 25.4% 58,500 3.2% 119,129 75,196 58.4%

Total Investment banking 141,515 119,443 18.5% 132,304 7.0% 273,819 196,348 39.5%


Core Non-Interest Expenses

28

(1) Excludes non-core adjustments consisting of merger-related revenues and expenses associated with our recent acquisitions and discontinued operations of SN Canada.(2) Transition pay includes amortization of retention awards, signing bonuses, and upfront notes.

Three months ended June 30, 2014

($ in thousands) 6/30/14(1)

6/30/13 % Change 3/31/14 % Change 6/30/14(1)

6/30/13 3/31/14

Net revenues 561,495$ 495,414$ 13.3% 548,435$ 2.4% 100.0% 100.0% 100.0%

Compensation and benefits 328,380 290,511 13.0% 321,035 2.3% 58.5% 58.6% 58.5%

Transitional pay (2)25,374 20,717 22.5% 23,452 8.2% 4.5% 4.2% 4.3%

Total compensation and benefits 353,754 311,228 13.7% 344,487 2.7% 63.0% 62.8% 62.8%

Occupancy and equipment rental 40,493 37,768 7.2% 39,570 2.3% 7.2% 7.6% 7.2%

Communication and office supplies 25,691 24,124 6.5% 24,801 3.6% 4.6% 4.9% 4.5%

Commissions and floor brokerage 9,248 9,374 (1.3%) 9,028 2.4% 1.6% 1.9% 1.6%

Other operating expenses 47,379 37,698 25.7% 45,977 3.0% 8.4% 7.6% 8.5%

Total non-comp operating expenses 122,811 108,964 12.7% 119,376 2.9% 21.9% 22.0% 21.8%

Total non-interest expense 476,565 420,192 13.4% 463,863 2.7% 84.9% 84.8% 84.6%

Income from continuing operations before income taxes 84,930 75,222 12.9% 84,572 0.4% 15.1% 15.2% 15.4%

Provision for income taxes 33,664 30,089 11.9% 32,544 3.4% 6.0% 6.1% 5.9%

Non-GAAP net income from continuing operations 51,266$ 45,133$ 13.6% 52,028$ (1.5%) 9.1% 9.1% 9.5%

Non-core expenses (after-tax) (5,689) (14,217) (4,055)

GAAP net income from continuing operations 45,577$ 30,916$ 47,973$

Three Months Ended % of Net revenues

Core Non-Interest Expenses

29

(1) Excludes non-core adjustments consisting of merger-related revenues and expenses associated with our recent acquisitions and discontinued operations of SN Canada.(2) Transition pay includes amortization of retention awards, signing bonuses, and upfront notes.

Six months ended June 30, 2014

($ in thousands) 6/30/14(1)

6/30/13 % Change 6/30/14(1)

6/30/13

Net revenues 1,109,930$ 934,026$ 18.8% 100.0% 100.0%

Compensation and benefits 649,415 550,812 17.9% 58.5% 59.1%

Transitional pay (2)48,826 41,543 17.5% 4.4% 4.4%

Total compensation and benefits 698,241 592,355 17.9% 62.9% 63.4%

Occupancy and equipment rental 80,063 68,741 16.5% 7.2% 7.4%

Communication and office supplies 50,492 45,459 11.1% 4.5% 4.9%

Commissions and floor brokerage 18,276 17,823 2.5% 1.6% 1.9%

Other operating expenses 93,356 70,435 32.5% 8.4% 7.6%

Total non-comp operating expenses 242,187 202,458 19.6% 21.8% 21.7%

Total non-interest expense 940,428 794,813 18.3% 84.7% 85.1%

Income from continuing operations before income taxes 169,502 139,213 21.8% 15.3% 14.9%

Provision for income taxes 66,208 54,022 22.6% 6.0% 5.8%

Non-GAAP net income from continuing operations 103,294$ 85,191$ 21.2% 9.3% 9.1%

Non-core expenses (after-tax) (9,744) (39,339)

GAAP net income from continuing operations 93,550$ 45,852$

Six Months Ended % of Net revenues

Segment Comparison - Core

30

Three and six months ended June 30, 2014

($ in thousands) 6/30/14 6/30/13

%

Change 3/31/14

%

Change 6/30/14 6/30/13

%

Change

Net revenues:


Institutional Group 255,712 215,444 18.7% 249,977 2.3% 505,689 388,744 30.1%

Other (1,464) (2,747) 46.7% 1,275 (214.8%) (189) (4,392) 95.7%

561,495$ 495,414$ 13.3% 548,435$ 2.4% 1,109,930$ 934,026$ 18.8%

Operating contribution:


Institutional Group 42,690 31,083 37.3% 45,622 (6.4%) 88,312 59,313 48.9%

Other (46,858) (34,785) (34.7%) (40,726) (15.1%) (87,584) (68,523) (27.8%)

84,930$ 75,222$ 12.9% 84,572$ 0.4% 169,502$ 139,213$ 21.8%

Operating contribution

Global Wealth Management 29.0 27.9 26.8 27.9 27.0

Institutional Group 16.7 14.4 18.3 17.5 15.3

15.1 15.2 15.4 15.3 14.9

As a percentage of net revenues: (1)


(1) Excludes the other segment.

Documents

Stifel Financial Corp. September 2014 · 2014. 9. 29. · Keefe, Bruyette & Woods Acquisition 2012 #1 Ranked in FT/StarMine Award* 2008 #1 Ranked in FT/StarMine ... 8 Oppenheimer